Huf karta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2012 A is senior citizen male, formed a HUF in 2009-2010 with his son B as a coparcener. Other members are A's wife, B's wife and minor son & daughter of B. A has 2 daughters married before 1990 and one of them died in 1995. The HUF has been constituted or came in force in state of Punjab in 2011. There are tax savings deposits in the HUF as assets with a tenure of 5 - 10 years. My questions are :

1) Does son & daughter of B ( who are minor ) are coparcener in the HUF or are they members ?
2) Do the two daughters of A also become coparceners in the HUF constituted in 2009-2010 though they were married much before 1990 ? Question is in view of successions acts amendments of 1994 & 2005.
3) Since A is very old ( abt 80 ), in the unfortunate event of anything happening to A, what will be required for B to take over as karta of this HUF ? A simple declaration by B's mother and B will suffice or signatures of live sister mandatory ? What about the deceased sister ?

Thanks in advance.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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14 April 2012 As regards HUF of A the coparceners are
1) A himself
2) Wife of A
3) Son of A
4) Daughters of A
All others are the members of the HUF
If anything happens to the Karta of HUF of A then automatically A's son shall be the Karta of the HUF. A's HUF shall be known as bigger HUF and none of the female members can claim partition but at the time of partition of HUF they are entitled for their share. You can further carry forward to ssunderagarwal@gmail.com

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2012 Dear CA S.S.Aggarwwalji,

Thanks for your reply. I have two more questions , one confirmatory and other new.

1) If I have understood your reply well, both the daughters of A - one predeceased and other live have equal share as the son B and wife of A even if the HUF a/c was opened with a Stamp paper constitution defining the coparceners and excluding the daghters already married before the a/c opening ??

2)Do minor children of B also become recipients of share equally or will the share be divided amongst wife of A,B and two daughters of B ?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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28 July 2024 Your questions touch upon various aspects of Hindu Undivided Family (HUF) law, particularly concerning coparceners, members, and succession. Here’s a detailed explanation based on your queries:

### **1. Status of Minor Children of B in the HUF**

**Coparceners vs. Members:**
- **Minor Children as Coparceners:** In an HUF, coparceners are individuals who have a birthright to the family property and can demand a partition of the HUF property. Minor children of B, being descendants of B, are indeed coparceners in the HUF.
- **Members:** All coparceners are members, but not all members are coparceners. In this case, the minor children of B are coparceners and therefore also members of the HUF.

### **2. Status of Daughters of A in the HUF**

**Legal Amendments and Daughters' Status:**
- **Pre-Amendment Status:** Before the amendments of 1994 and 2005, daughters did not have the same coparcenary rights as sons. Since your daughters were married before 1990, they were not traditionally considered coparceners under the old law.
- **Amendments of 1994 and 2005:**
- **1994 Amendment:** Provided daughters the same rights as sons in the ancestral property.
- **2005 Amendment:** Extended equal rights in coparcenary property to daughters, whether born before or after the amendment, giving them the same status as sons.

**Daughters’ Rights:**
- **Post-Amendment Status:** Even though the HUF was constituted in 2009-2010, the 2005 amendment applies retrospectively. Thus, your two daughters (one deceased and one living) would have equal rights to the HUF property as coparceners, regardless of their marriage status before the amendments.

### **3. Transition of Karta Role and Succession**

**Process for Transition:**
- **Legal Procedure:** If A (the Karta) passes away, the transition of the Karta role to B requires following legal procedures. Typically, a formal declaration and a resolution from the family members are necessary.
- **Declaration:** A declaration by B’s mother (A’s wife) and B will be required to appoint B as the new Karta.
- **Signatures of Sisters:** While the signatures of A’s live daughters (sisters of B) are not strictly mandatory, it is advisable to have their consent to avoid potential disputes. The deceased daughter’s share will be passed to her legal heirs.

**Successor’s Role:**
- **B as Karta:** Upon A’s demise, B will assume the role of Karta. The formal process involves documenting this transition and updating any records as needed.

### **4. Distribution of Assets in the Event of Partition or Death of Karta**

**Equal Share Distribution:**
- **Distribution Among Members:**
- **HUF Shares:** Upon the demise of the Karta or in the event of a partition, the assets of the HUF will be distributed according to the legal entitlements of the coparceners and members.
- **Equal Shares:** If no specific provisions were made, the daughters of A (both living and deceased) will have equal shares in the HUF property along with A’s wife, B, and B’s children.

### **Summary**

1. **Minor Children of B:** They are coparceners and members of the HUF.
2. **Daughters of A:** Both pre-deceased and living daughters of A are coparceners under the 2005 amendment, irrespective of their marriage status before 1990.
3. **Transition to B as Karta:** B can take over as Karta with a declaration from his mother and possibly with the consent of the living sisters. The deceased daughter’s share will pass to her legal heirs.
4. **Share Distribution:** All coparceners, including daughters, wife of A, and children of B, are entitled to shares in the HUF property.

Consulting with a legal expert or chartered accountant can provide additional clarity and ensure compliance with legal and tax requirements during the transition and distribution processes.